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Saving Money - Being Frugal Pays Off*

*This is a collaborative post*

If there's one thing I've learnt to become over the last few years then it's frugal! As anyone in debt knows, owing money - especially when you don't have it - is hugely stressful. However, there's no point dwelling on the issue and doing nothing about it, what does matter is that you learn from your errors and the experience so that it doesn't happen again. Of course being frugal doesn't mean that you can't spend anything, it just means that you'll think more carefully before splurging, perhaps asking whether you really need an item before parting with your cash. It also means you'll learn the art of bargain hunting and trust me when I say that this can be a lot of fun! The more you watch the pennies and make cutbacks, the more your savings will grow.

First sit down and look at your outgoings. It's highly likely that there'll be room for cutbacks. Ask yourself if you really need to drink the most expensive coffee? Take advantage of any supermarket rollbacks and look at what you're spending on your weekly food shop. Perhaps switch out your popular brand name cereals to cheaper supermarket own versions instead. Often you won't even notice the difference in taste. You might want to also consider switching supermarkets entirely if another store has better offers or value for money.

The food shop is just one area where savings can be made. It's the way of life - unfortunately - that there will always be unexpected expenditures. As frustrating as this is, it pays to have a little patience and shop around. For instance, if your tumble dryer is on the blink, don't rush into buying the first one you see. Instead do some research and browse the net for the latest deals on household items. You'll be really glad you did!

Look at the best deals for petrol and shop around for car insurance. It doesn't always pay to stay with the same company year after year.

How much do you pay for your gas and electric? Could this price be lowered by switching suppliers?

It's often all the little things that contribute to making a big difference. Of course one option is to try making more money but there's only so many hours in the day. Burning the candle at both ends does eventually take its toll.

If you're keen to get a little frugal and start building your savings, simply begin by keeping a list of all your spends and then review this at the end of each month. You may be surprised to discover where you're frittering money. I myself am an avid list maker - apparently it's a Virgo's trait - and I find it really helps if I list my income and expected outgoings month by month.

Why not give yourself little savings goals? This could be a great incentive to help you stick to your new budget.